could have another ten years before it's done on humans. >> but there is hope. they hope to grow human hair on bald mice. >> the "closing bell" is next. welcome being to the "closing bell." i'm michelle caruso cabrera. >> and i'm bill griffeth. the dow off the lows of the day after posting losses in the session. technology is the early losers after ibm and intel failed to impress investors with the earnings results. that group is off the lows of the day at the moment, though. here's a look at where things stand at this hour as we go into the last hour of trading. dow off the lows down 54.

we were down 87 on the low of the day. now at 13,061 and change. a decline of half a percent. the nasdaq is positive for only the be second time today. up a third of a point at 2,043. >> take a look at the stocks that we're watching in the final hours. american express reports earnings after the bell. we're awaiting results from big names like ebay, qualcomm, and young brand. stay tuned for instant analysis and reaction. the argentan government reduced production due to a state takeover. reversal of fortunes on wall

street. big two-day rally before this. we have bob pisani on the floor of the new york stock exchange. simon hobbs, can't wait. >> i'd love to hear what simon has to say because everyone i've talked to is talking about the spanish and the ministry banks out there. we need some help from you guys. do you remember that valentine? >> you say that jokingly but -- >> i'm not saying it jokingly. >> but they did it in greece and the greek banks sucked it every day and became victims of their sovereign. it's not funny. >> the point is, it's happening. >> yeah, i'm sure it is. >> and the valentine that i'm

referring so the the 1% euros that they are giving out. simon, what's your thoughts? >> both sides are in this together now, isn't it? look how badly the spanish stock market is doing. we're 4% above the crisis lows. the danger is that with spain the economy is crumbling so badly. the loans are rising, debts are rising so badly at 20% unemployment. the government is going to have to presumably come in and help them. will there be external funds? that's the conversation that is going on. they are all in it together. to a certain extent we are also in it with them. if either the corporate confidence turns to tomorrow's auction, you get a turning of the sovereign debt and then we are all in some difficulty. >> don't you both feel like,

though, a year ago we were thinking possible armageddon, right? a year ago we would have been down how many hundred of points? >> 250. >> we all know that the ecb is going to step in and do what it takes. they have showed us over and over again. >> they have really tried to pull back into armageddon. >> of course they wanted to pull back. they are there as a viable safety net should there be a real problem. >> how do we know if it is successful? here's my point -- >> the market will tell us. >> it's small. 2.5 billion is what we're talking about. obviously they are going to need to cover that. simon, would you say if we had a six handle on the ten-year, that would be not successful? >> whatever i say is arbitrary. if you're in the market, to your point about the ecb intervention

to be shorting at 6 1/2 to 7%. this is not an event. this is a process that we're going through now. this does not end tomorrow. it's going to go on and the economy is getting so much worse in spain and the debt is getting worse. to a certain extent the banks need to roll over their debt. look at the volume of money that they are taking from the ecb. that hasn't solved the problem. >> we now have a movie. we've seen the movie. more than a year ago we wonder could a nation fall on its debt. >> the answer is yes we can do it. >> you are right. and there is an imf meeting at the moment but you come back to the same point. if the bond market rolls over in spain and it will thereforeroll

over in italy, there is not enough money to fund italy and spain and take them out of the sovereign debt market for two or three years, end of story. >> let's not forget, it's a game of confidence and if the confidence exists that the imf and ecb are in place to provide that safety net, the confidence is what will help. >> they all say that and get stuffed down. >> lrts. thank you, guys we'll be you can taing about that. >> stocks may be lower but we're seeing a bit of silver lining. bertha coombs is at the cnbc realtime exchange. >> s&p even on the day down just one point here a moment ago it

was just and and it's really been consumer only sector you can see the dollar guys there, starbucks gets the estimates up ahead of earnings and gap at eight, ten-year high. a lot of color in the last couple of days. green has been the big color. as far as tech is concerned, the drag definitely coming from ibm. ibm, in fact, responsible for 50 points to the downside. intel also disappointed. nasdaq has been positive for much of the day for good reason with yahoo! having beaten on its earnings. scott thompson saying one thing we've got to do is get real fast

and good on mobile and that's one of the things that he wants. apple, meantime, bouncing back to the levels it was last friday. that is the big heavy lifter. in terms of that ypf story, ypf today it opened -- you can see there about 11:30th morning after shares resumed trading. this afternoon, the state department is weighing in, saying that it is very concerned about the move to nationalize the firm and is urging the government in argentina to moralize its relationshipdown 3. >> argentina hasn't had a normal relationship, as you well know. you hate them. >> the story has just become. stay tuned. we're heading towards the close. another busy couple of hours. hope you can stick around. a lot to come.

dow off the lows. down 45 points at this hour. >> young brands set to kick off a big week for earnings. which names in this group look appetizing? >> well put. plus, morgan stanley, should you buy or sell that stock ahead of the results. the talking numbers trade on morgan stanley is coming up. and then after the bell, how much will pay pal pay off for ebay's bottom line? instant reaction to the earnings at 4:00 p.m. in the meantime, here's how the s&p heat map is shaping up today. a little more red than green at this point. you're watching cnbc, first in business worldwide. glad you're with us. zap technology.

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welcome back to "closing bell." big moves in shares of chess pea energy on reports that ceo has taken out over $1 billion in loans to co-invest in the company's oil wells.

it was waived by shareholders in 2005. i'm told this year's proxy comes out tomorrow where general counsel henry hood tells me that information will all be there but what's unclear is what mcclen don's position is at any given time. the big concern with the investment is the loans backing mcclendon's loans are backed by the oil wells. in no way would the creditors come before the company. this allows him to choose each calendar year, with stakes of up to 2.5% in each. over the last 23 years, our well count has increased and aubrey has never not paid his bills. i'm not really sure that's the

issue. shareholders just want some information. >> what a story. kayla, thank you very much. heading to the close with 48 minutes left, let's do a market stat check on the various averages. techs drifting off session lows. still big losers including first solar, memc electronic, a mph enol, jabil sir kit, ibm. a bit of a defensive play for the markets. ibm is responsible as a single component for 52 of those 59 points that we're seeing for the downside right now. >> so nearly all of it? >> exactly. it's an ibm selloff, at least

right now. in the meantime a. slew of fast food chains due with earnings out this week. young brands, the owner of taco bell, kfc, and pizza hut, as staked much of it is future on the emerging markets. they are tailoring its brands and appears to be paying off in china where the annual operating profit has tripled to $908 million in the past five years but with rising food and labor costs in the asian country, can this recipe success continue? >> joining us is web bush securities and give me an overall picture, steve, as we look at these results after the bell. are we going to see a continuation of the trade down or the better economic data that we've seen lately, is that going to hurt these restaurant chains? >> i think it's going to be a mixed bag.

what we're seeing in our data with consumers, here in the u.s. specifically, is an acceleration of the tradedowns, especially as unemployment rates are still very high and we've seen gasoline approaching 4 clarz. we would definitely see the acceleration in that trade down. that might be good news for the u.s., finally, and as you mentioned, it's all about china and how that is a slow down going to affect the consumer there. we've never seen that before but who knows as we go forward. >> nick, michelle mentioned that they are tailoring the taco bell and pizza hut brands to china. what are they doing? what are they doing to make it more appealing to the chinese consumers? >> well, the biggest brand there is kfc. it's really driven by the chicken product and they are now moving into india as well where they have the kfc brand above

1,000 units as early as a lot of success doing that. they will continue to do that. the key is really the domestic driven part and the growth from about half of last year. >> price point there. nick, does it -- is it as good as it is here in the united states and do you need ten restaurants in china to be the equal of one here in the united states? how does that work in. >> no. in fact, it's 42% of profits for young brands coming from china. that's going to continue to grow as china gross in double digits, you know, india now is going to -- they are aiming for 100 million by 2015. so really the international punch is much bigger for young

brands. >> before we go, what do you think about the chipolte which has been on a terror? they are losing the ceo which is retiring this summer. what is your outlook? >> i would say that my outlook is very positive. we're seeing an acceleration throughout this quarter. consumers going in there. put it in sports with mcdonald's, they have dominated the restaurant industry globally much like navy football has dominated the army. i don't expect that to continue on any one of those fronts. >> steve, what's your pick on the sector? >> the coffee space, with coffee trades coming down, i'd be looking at a company like starbucks or pete's coffee. >> nick, what's your best idea in this group? >> i continue to like chipolte. >> all right. gentlemen, thank you both. we'll have young brands

cominging out with their earnings after the close tonight. thank you, guys. >> just about 45 minutes before the close and the nasdaq is lower by a little more than 3. >> morgan stanley has outperformed the market. we'll break down the charts coming up in talking numbers. >> plus, should you buy shares of best buy on the reports that there may be a private equity takeover. we will have that next. >> we'd like to know whether you go to the best buy store to look at stuff and then buy those items elsewhere online. that's our question of the day. tweet us @cnbcclosingbell. >> did you not like that question? >> did i say that? >> as we head to a break, here is how the dow is trading. great shot.

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take a look at natural gas after being higher by 2% most of the day took a turn for the downside right near the close. new lows are just beginning new lows. john kilduff, a cnbc contributor, says look for 185 as the new downward point. we've got a lot of supply here. a lot of storage. let's look at the open interest.

a lot of activity here and according to the data, there are big positions on both sides of this trade but the open interest is at elevated interests, something to point out. bill, back to you. >> once i think they are going to be comfortable above $2, it falls back again. thank you, courtney. >> thanks. we're going to look ahead to morgan stanley. the earnings, the question is, which way should we go. it's been lagging the financial sector in talking numbers on the technical side. rich ross is the global technical strategist. on the fundamental side is sandra o'neil. we know that numbers have been a strong sector but they have been strong without morgan stanley. >> that's very true, bill. heading into the earnings report, the stock has pulled back to a critical inflection point.

let's take a look at the chart. i'll break it down for you. after a 15% correction from that late march high, an important cluster of support has been established here. that support comes in multiple ways. we have the trend line of last october. the well-defined trading range followed by 17 at the low end, 21 at the high end. any whiff of gdisappointment, yu can kiss that 17 level good-bye and sets you up for a retest of the $13 level. of course, any positive surprise, it's going to set you up for a fast move in the opposite direction just as we saw in equities in the s&p 500 earlier this week. so once again, critical technical inflection point. >> what are your expectations? a company has been trying to turn things around, big layoffs, trying to shore up their cost

structure. what are your expectations for morgan stanley? >> tomorrow when they announce earnings, consensus is 42 cents a share but everybody needs to be aware that excludes dva loss. the headline number, the gap number is probably going to be a loss, not a 42 some profit. understand it doesn't necessarily make it a miss. >> right. >> morgan stanley has certainly struggled. what they have done has gotten them on the right track. i don't think they are going to disappoint tomorrow. it's a tough call day to day. as long as the economy includings along, there is going to be a lot of earnings upside and much better returns out of the stock. >> what about their exposure to europe? are they subject to the whims of the debt crisis as other banks are? >> europe is definitely an issue but it's not a morgan stanley-specific issue. the aur row zone is the second largest economy in the world.

if it goes south, we've all got problems. >> that's for sure. >> the way it's gone, morgan stanley underperforms. good news, it overperforms. i don't think it makes fundamental sense but that's what it is. >> in fact, you've got a comparison of the euro stock index. >> well, we do. if europe is a guide, it does not bode well for morgan stanley. look at this very strong correlation. the two are handcuffed and linked at the hip. we've seen that index give back all of the gains for the year. 12% from that peak to where we are today. flat on the year. down 6% for the month. moving lower, structure broken. >> good to see you both. thank you. david faber has a first on cnbc interview with morgan stanley,

ce oechlt james gorman tomorrow at 1115 a.m. michelle? >> the nasdaq is lower by 4 and we have 45 minutes to go before the bell. u.s. equity strategist jonathan predicts the s&p will be more than 6% higher by the end of the year. find out what he thinks about the potential for that. best buy reportedly a private equity takeover target, do you ever buy stuff at best buy or use it like an amazon showroom? send us a tweet @cnbcclosingbell. as we head to the break, here are some of the stand-out performers. the very top, intuitive surgical higher by more than 8%. tdd# 1-800-345-2550 i'm constantly working my screens. tdd# 1-800-345-2550 checking the charts. tdd# 1-800-345-2550 looking for support, tdd# 1-800-345-2550 resistance, breakouts, tdd# 1-800-345-2550 a few other tricks that i'll keep to myself. tdd# 1-800-345-2550 that's how i trade.

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welcome back. bob pisani on the floor of the new york stock exchange. 50 points on the dow. three to one declining to advancing stocks. sector has been on the weak side. ibm at one point down 3%.

some of the names are to the upside. financials, materials, industrials all fractionally down. most of these stocks on either side a positive or negative a lot of earnings and see how that credit card business is going. guys, back to you. >> bob, thank you very much. write this number down, 1475. you wrote that down. that's the target for the year. we're currently sitting at 1386. that's what we want to know, right? >> along with joe as well, guys, hi? >> jonathan, how do we get there?

>> that's what we're seeing. in the last week or so that earnings season has been under way, 20% of the market of the reports that are in in terms of market cap and beats at 7% ahead of estimates. that is a big start. much bigger than anyone thought in the recovery cycle. >> you don't think it's too high for the outlining quarters. >> that's what everyone thinks. you're 2 1/2, three years into the economic recovery, these numbers get lower and lower. bottom line is we were all too somber about economic concerns and the numbers are coming in high. >> are we at $100 high? i keep hearing about the $100 year. >> we just upgraded to -- >> i don't care about 103. >> we're over 100. >> finally. >> joe, what do you think is going on in the market? what's the catalyst for you? >> we certainly share jonathan's bullishness around equities. we think the market has room to

grow. we're generally constructive about what is going on in the economy. we think there's an upside to earnings. the first quarter is coming in good so far. we're very constructive and tend to be overweight equities versus fixed income. >> all of those bricks and the wall of worry. >> certainly a lot of clouds on the horizon as there always are. we feel the european situation is while still unresolved still a bit more contained. certainly there's some probabilities, that can cause some problems. we see reasonable global growth to sustain equity values. >> there are the consumer sectors. you're underweighting financials and utilities.

so far this year they've gone in opposite directions. as we've shown later, financials have are been very strong. utilities have not. >> right. >> but you don't like either one of them? >> very different stories. utilities is only one of two sectors where there's expectations for a decline in earnings which is utilities and telecom. with respect to financials, the earnings are coming in very strong but if you do it, you're talking about this a moment ago, if you get a hiccup in europe, the financial sector is the one that tends to get hurt the most. while the earnings i think are going to be okay, i rather you're in discretionary. >> we share underweight in financials. it's unclear what they can your honor. we a earn. we're underweight materials and energy and we're constructive on that given our foundation in what is going on in the economy. >> gentlemen, we'll see you both

later. we'll see you on the countdown coming up here as well. as we head towards the close, about 26 minutes left. the dow is holding steady here. >> best buy shares, are they a good-bye amid the reports that the company could be a takeover target? meanwhile, can best buy compete against the likes of amazon? we'd like to know where you go to best buy and look at all of that stuff or just buy it on your phone? some of your best responses are later in the show. >> we just gave them the idea. >> right. wall to wall earnings. don't miss instant analysis from ebay, american express, yum brand, and qualcomm. the s&p is trading -- nearly all of them are down with the exception of discretionary, the one that jonathan likes.

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welcome back. i'm seema mody. tech stocks leading the decline. health care trading higher. take a look at pfizer. the company may be closer to finalizing the sale of its nutrition business. another player could get back into negotiation with pfizer and increase the bid. right now nestle is in first place. 21 minutes trading on the nasdaq composite itself drifting quietly upwards for a 2:00 p.m. low. down 19 at the session lows. some of the biggest gainers at the nasdaq, starbucks, and last

night's rating. >> electronics retailer may be a takeover target. the beaten down company recently announced the closure of 50 stores nationwide. still, the company generates over $1 billion in cash a year. has very little debt. as a search for a new ceo continues, should investors buy in or run for the exits? joining us now in a stock brawl, a buy rating, david and scott with a hold. guys, good to see you. all right. so why is this a buy, david? why should people get in here? >> these guys still generate $2 billion of cap ex every year.

i was wrong this year. the stock has been terrible. the products have been digitized, demand is weak. the channel is at an inflection point. 20% of the market is online. only 26% of best buy's sales are online. and then thirdly, the retail stores themselves are returning to showrooms where people are price checking and finding out that there's a cheaper alternative for amazon or others

online. very difficult for them to address. >> i recognize that remark. david, though, still, even though we know that a lot of people visit an online showroom, you point out that their square foot is competitive compared to others. >> they are far and away than any others. >> 846 bucks for square foot. that's pretty impressive. >> and the margins aren't as strong as those guys but there are still pretty good margins. still gets them on a per square foot basis, more operating profit. and they are going -- they are making changes, some late and some early. it's been overrated as well. i think the market sales is going to go down. when tvs were 2500, it was

doable. it makes it very tough to make it profitable online. >> does that push the stock ket higher? >> i don't think a leverage straps it with a very significant loaded debt would be fool-hearty, dangerous. >> that hasn't stopped equity before, honey. i mean -- >> kind of an ugly mess on the side of the road. he wants to have an exit strategy. he wants to go in every three to four years. >> maybe there's been one other of this size.

it's a tough one to get done. i'm not worried about an exit strategy. what you can pay for this thing, you can spin off the chinese operations. that's probably $800 million. you can do something with their european mobile business. you can get returns here and despite all of the arguments and the difficulties around the story, the cash flow really hasn't changed that much. >> guys, good discussion. its with a lot of fun. thank you for joining us. >> our pleasure. >> we've been asking you whether you actually buy items at best buy and then you go home or on your phone and buy them online. here are some of your responses. steve tweeted, i recently picked out a tv at best buy and then went home to buy it on amazon for a savings of almost $200. go to any merchant that has the tech item i'm looking for and then i shop price. past year they were very aggressive matching prices. if they continue to do that, i will go there. >> one of your analysts pointing out, best buy's margins are not

as strong as other retailers out there because they have to match prices with online retailers. and i have to admit, my son and i when we go to a bookstore, i do the same thing. we shop -- >> a lot of people buy tvs, you and your son go book shoppinging. that is so charming. >> well, of course. by the way, send us your tweets to @cnbcclosingbell. we've been talking to all-star investors. we're going to get advice from a global fund manager on where he is finding opportunities around the world. as we head to the break, this is where the major currencies have been trading. we're back after this. ♪

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okay. i'm back on the floor of the new york stock exchange.

shares of gen worth financial down 22% wiping out that value after the company delayed the initial public offering of its australian mortgage insurance division until early next year. the ipo was expected to raise 850 million u.s. dollars. they are delays this because of recent division performance in australia itself. expected to post a modest first quarter loss as foreclosures picked up in queensland there in australia. with this 22% decline right now, genworth financial has been down 50%. >> what we are going to do into the close, a cnbc contributor analyst. thank you. >> thank you. >> it says here we can't do anything until we get the spanish bond out of the way.

why? >> today is april 18th, 2012. happy birthday. what does it mean to your investors? we've got to wait to see what the results are out of europe. >> why do we care so much about whether the spanish government can borrow money tomorrow. >> well, it's indicative of how much confidence they have. but in a side bar today is a french election. i've heard more traders talking about the implications of sarkozy losing which is something that you don't hear, people talking french politics down here. the earnings have been sort of unremarkable but okay, particularly in light of the way oil prices have risen. but people are still focusing on the macro and another piece of information that people are starting to look ahead to is what is going to happen with the fed come june because the wall street likes stimulus. >> of course it does. >> wouldn't you say -- we have

all of these issues in europe. slowly but surely, the market sees through it and go through a horrendous recession but at the end we're going to be fine. right? i mean, look at the moves that we've seen in spanish auctions and spanish yields in the last couple of weeks and the market went down but not like we've seen a year ago. >> there's no question that the tape is painting a different picture than last year. the investors are not going to get caught last year where they are buying dips like they see them come with all sectors. buying is still muted, though. there's some event that significantly spooks this market, then we could see this thing get out of hand in a hurry. so i think there's still trepidation. better than last year but not all systems go. >> all right. we'll be watching the spanish

market tomorrow. all right. the dow is down 76 points. we're just getting word of the passing of dick clark. apparently the pioneer broadcaster, one of the great entrepreneurs out there, famous for american bandstand and new year's eve, dick clark was 82 years old, passing this morning of a massive heart attack in his home in los angeles. he will be greatly missed. back after this. everything that i've gained in life

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okay. we're at the five-minute mark before closing. the s&p is on track for the biggest monthly decline since september. okay. get this, the dow is on track for its first monthly decline since september. that's how strong this market has been since that low put back in early october. but lately now we're seeing a number of asset classes hovering around round numbers. you're inclined to buy, get below, you're inclined to sell.

for example, today, the yield on the ten-year note, back below 2%. that's when you see the buyers come back in. i'm sorry. the sellers start to come back in as it gets above 2%, that's where the buyers come in. we're back below the 2% level. price of oil, brent and north sea crude and wti oil has been narrowing. got below $14. here we are with a sharp decline early in the day again on invest inventory data. selling off again today, at $1.94 on nat gas. that's one to watch long term, i would think. for the dow getting back to 13,000, we were below that earlier. now we're back to it down 84 points as we head towards the lows of the session, put in about an hour -- two hours ago. we're at 13,030. now, look at this.

i'm going to bring this up with jonathan again. last year one of the best performing sectors, if not the sectors for the utilities, financials were the worst. so far it's been reversed. look at this comparison chart going back a year. if you held the utilities, you would have a 9% gain a. 3% decline for the financials. but so far this year the financials are up 17% and the utilities are down 3% and today one of your favorites, the consumer discretionaries are the only sectors that are positive. the utilities have been doing well and guess who is near the bottom? the financials. it's not a zero sum game, i realize, but they represent risk on and risk off and this has been a risk on year for the market so far, right? >> it has. and continuing to weigh on the

financial sector, ultimately it's a real sign about how positive a tone of the market has been. and to your point, when the market gets more optimistic, which i think it is, you move money out of utilities and into technology and that's what we're seeing. >> after such a stellar performance in the first quarter where some people are taking profits, you don't want to do that? >> i don't want to do that. and i think the bottom line when we're looking at an earning season 20% over and 7% beat which is a huge quarter given where we are in the cycle, i think you'll want to be cyclically exposed and long on the market. >> where does energy fit in? to this point, energy has tended to track with the equities market as equities go higher, so does the price of oil. what about you? >> if you look at the earnings and energy space, it's two big stories during the quarter. oil prices are up, but the crack spread, the money that you make on distilled product doubled during the quarter. i think it's going to be a really big quarter for energy

that happens in a week or so. it's not one of the early reporting sessions. >> so you like energy at these prices? >> i do. it is macro exposed. the earnings are going to be really strong. >> technology, what is going to stop that juggernaut? i can't find anybody who says i don't like technology stocks. everybody loves technology. >> first of all, you have great earnings growth ton of cash and cheap valuations and some of that is the success that apple brings to the overall group which is important. but if you saw the results out of google and yahoo! slightly weaker guidance from intel and ibm. there's nothing that we see right now that doesn't make you want to not own the group. >> why not take a flyer on those financials? >> it's a group that we are warming up to. the question is, can i be economically optimistic u